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Knaus Tabbert Targets to Grow Sales to $2.4B by 2025

Knaus Tabbert has invested over 220 million Euros in expanding its production capacity to 50,000 units. The goal is to increase sales to € 2 billion by 2025, a report said.

Wolfgang Speck is the CEO of Knaus Tabbert AG. He said: “The investments represent an important milestone in our Group and fit seamlessly within our strategy. This will ensure our continued dynamic growth beyond 2022 and help us to expand our market share in our core markets over the long term. The three central strategic pillars are digitization, lightweight construction, and e-mobility. Diverse megatrends are a strong wind for sustainable growth.”

The capacity of the site in Nagyoroszi, Hungary will be greatly increased. More than 20,000 units will be built in Hungary over the medium term (currently, 10,000). The capacity will be comparable to the Knaus Tabbert headquarters at Jandelsbrunn in Germany. Parallel production, or growth capacity, is planned at the headquarters for the Morelo brand, the market leader in luxury motorhomes, in Schlusselfeld. This will be accompanied by the introduction of a new product range starting 2022.

The company will rely more on a wider supplier network for its core components to ensure supply chain security and material supply. Different chassis manufacturers will make it easier to differentiate brands and product segments in the area of chassis supply, starting as early as 2022. A multi-sourcing strategy, which will allow for volume quotas to be increased in motorized vehicles, will greatly support the growth path.

Due to continued high internal financing strength, the debt ratio (net financial/EBITDA), is expected to remain low even after the implementation of the investment plan.

Knaus Tabbert AG plans to achieve a CAGR of more than 20% in annual sales, which will bring the total revenue to two billion Euros by 2025. Due to the high order backlog, which is EUR 1.2 million as of June 30, 2021, 2022 will likely be significantly higher than the average growth rate.

Knaus Tabbert expects to achieve a margin of approximately 10 percent in operating profit relative to adjusted EBITDA due to the increased production volume and the resulting economies of scale and scope. This is possible with the help of the rising production volume. For the next years, further increases are anticipated. Due to the company’s strong internal funding power, the dividend policy (distribution in the range of 50 % to approximately. The dividend policy that was in place up to now (distribution of approximately 50 % from the net result) will continue.

The Supervisory Board’s approval of the multi-year plan, as well as the investment offensive, will be the foundation for the company’s attractive future. Wolfgang Speck CEO of Knaus Tabbert AG said, “We are confident that we are providing our investors with a very worthwhile investment,” the report added.

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cedarCleo
cedarCleo
May 1, 2024 9:43 pm

Did you catch that Knaus Tabbert is jazzing up their customer experience and eyeing new markets for a sales boost? Sounds like they’re all set for a grand adventure!

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Hi, you might find this article from Modern Campground interesting: Knaus Tabbert Targets to Grow Sales to .4B by 2025! This is the link: https://moderncampground.com/europe/knaus-tabbert-targets-to-grow-sales-to-2-4b-by-2025/